South Korea is set to lift its ban on cryptocurrency exchanges, it will enforce stricter anti-money laundering and KYC regulations as part of the regulatory overhaul.

BlockBeats News, May 21st, according to The Block, as South Korea gradually lifts the ban on institutional cryptocurrency investment, local cryptocurrency exchanges are required to strengthen "Know Your Customer" (KYC) measures for new institutional customers in cooperation with partner banks.

Starting from June, specific non-profit organizations and registered cryptocurrency exchanges will be allowed to sell their held cryptocurrency assets in South Korea. Non-profit organizations can sell cryptocurrency acquired through donations, while exchanges can sell a portion of the fees paid by users in cryptocurrency.

The South Korean financial regulatory authority, the Financial Services Commission (FSC), stated in an announcement released on Tuesday that cryptocurrency exchanges and their partner banks must thoroughly verify the source of funds and the purpose of transactions for new institutional customers.

The FSC pointed out that the purpose of strengthening KYC measures is to prevent money laundering risks and protect the local cryptocurrency and financial market. To this end, the regulatory authority has also stipulated that relevant institutions and their CEOs must undergo supervision and review related to money laundering activities.